"Capital is the stable money banks sit on....think of it as an expanded rainy day fund." AP, July 21, 2010)
Unlike the famous song (from "My fair lady"), the rain in Spain falls mainly on the spanish people.
What about banks?
To use a spanish expression, "vivir como um rajá" ("live like a king").
Banks in Spain are, in fact, living like kings.
The fabulous amount of money that Spanish banks have (post-euro-bailout), is lacking in Spanish Economy. Spain has the highest unemployment rate of the European Union (EU 27. According to the Eurostat´s fresh data, the unemployment rate in Spain is 26,2%, more than 5 (five) million people wihtout a job. (to see the detail, eurostat indicators - 170/2012 30 November).
And, the hidden irony is that Spain is not the country with the worst debt-to-dgp ratio.
Do we think there is a (direct) relation between Government debt to GDP ratio and unemployment rates? Think again. See the data. Spain has the highest unemployment rate in the Euro area (26.2 % in percentage), more than 5 million people without a job and yet, Spain is not the country with the highest debt to DGP in the Euro area. Germany has a higher public debt than Spain (goverment debt to GDP ratio) Germany has 80% in percentage, Spain has 70% in percentage)and still, the unemployment rate in Spain (the highest in the Euro Area) is 26.2 % in percentage, while the unemployment rate in Germany is 5.4% in percentage, on of the lowest in the Euro Area (to see the detail, please consult the data -Eurostat.)
We have to start thinking about the people. Persons, instead of numbers. Health instead of wealth.
The only rate we should care about is the unemployment rate.
Better, perhaps, to take a cue (advice) from Plato (a greek, the supreme irony): "A good decision is based on knowledge, not on numbers"

I haven't checked the numbers, but I think Mr. Macedo's figure is right for public debt and you are right for public+private. The problem is that somehow the economic system is demanding that the government takes the hit for the private debt, when it should be taken by the lenders. How come there is no haircut on the lenders to the cajas that so ruthlessly squandered funds? I imagine that the nationality of the lenders (banks from a very big central European country) has more to do with it than justice or economic sense.

The article highlights the virtually impossible position of Spain. Afrikaner211 offers a truly discouraging take on the causes. Whatever the causes, the theoretical bank restructuring only adds to Spanish misery by increasing unemployment and reducing public purchasing power. It is hard to see how any of those dismissed will find new work, and certainly not in finance. Unemployment and a constricting economy are the ingredients in a recipe for radical political change. Beware the man on a white horse.

The clear difference has to be made between the commercial banks
and saving banks in Spain.
While commercial banks are basically in good condition, the saving banks are in deep trouble as a result of disatrous management by
politicians and trade union officials, sitting in the board of
directors of these institutions.
The saving banks were used by this bunch of incompetent political crooks to finance completely failed projects (empty airports, empty houses) to illegaly finance political parties and trade unions or
to steal directly the funds for private use.
To add insult to injury, the overwhelming majority of these political crooks has been rewarded with multi-million compensation
packages when finally they were forced to resign.
The saving banks catastrophy in Spain is the exclusive responsability of Spanish political class, one of the worst most
incompetent and corrupt in the world.

Altough the commercial banks also helped in inflating the housing bubble allowing mortages above 100% of the house sale price and with no collateral, we didn't have to bail out them with public money.
However, I agree that the bulk of the blame is on the Cajas. I would also add to the list the bank's spanish supervisor (i.e. Banco de España). By the way, do you kwnow that Mr. Jaime Caruana, Governor of Banco de España from 2000 to 2006 (the wild years for the banking sector in Spain) is now the General Manager of the Bank for International Settlements in Basel?
It is also shameful to watch Mr. Miguel Blesa, the former CEO of the heart of Bankia (Caja Madrid) from 1996 to 2008 in a cocky attitude in the useless hearings in the spanish Parliament. Nothing will happen to him.
My question is: what happens with moral hazard here? When the management and the supervisors of the bailed out banks walk away without any responsability? Not only that, they walk out with huge compensations or even with greater responsabilities, like Mr. Caruana.
I think this is not only immoral but also a disaster for the spanish economy, because the current and future bank managements and supervisors know that nothing really bad will happen to them if the put the system in risk one more time.

Together with the news that the bailout for Greek banks has been approved - and apparently a deal with Cypriot banks is around the corner - perhaps we are finally seeing the beginning of the end of the Euro-crisis.

The Italian Treasury sold 6-month bills at below 1% the other day, for the first time since before the Greek crisis. Italian 10-year bonds on the secondary market dropped to 4.6%, with a spread of 320 basis points. If this keeps up, perhaps 2013 will be a decent year.

So, what shock is next? Iran? Japan? American post-electoral recession?

What has been achieved for the moment is to keep all insolvent countries (Greece, Portugal, Ireland) or countries at risk of insolvency (Spain, Italy, Spain, Cyprus) and those banks which are in similar condition afloat - at the price of more than tripling the ECB's balance sheet.

Fundamentally, not much has changed.

Particularly Italy has virtually stopped reformig since the credit crunch was averted this past summer. If that's it, the crisis will come back with a vengeance next year.